07-05-89 Finance Comm MinutesF1T•1ANC7/PI7ZSONT•jEL 5 P0LIC"1/ITISURFJXT:
6:1.5 All JULY 5, 1969
• The meeting was attended by Mayor Kennedy, Councilmen Atkinson (Chairman), Nystul,
Saverud and Hopkins. Also attending were Bob Benson of Blue Shield and Blue
Cross, Insurance Agent Ed Hall, Clerk/Treasurer Hal-ver and. Ross Plambeck.
1. Health Insurance Contract.
Rob Benson presented the conTrcittee rnesnbers with copies of the letter from Blue
Cross and Blue Shield (MPS) requesting a 49.9" increase in our Health Insurance
Premium beginning August 1, 1969.
Person e g)l.ained the reasons for the rate increase and also suggested some
possible actions to reduce the increase.
He said we could consider an H. M. 0. Option whercbfr employees would choose to use
one of eight doctors under contract. to ;;TPS. This would reduce the office call
costs of those using this option.
Another area to be considered would be to increase the deductible, the amount the
employee pays before insurance "kicks in".
They will he implementing N ged G?re which will cut- costs a little. MPS will.
require preapproval of surgery, for ex2,n- ple, and fray he able to suggest or require
a less cr.T.*nsive option or procedure.
2. Agent of Pecord Proposal
• Fd Hall offered to serve the city as its agent of record. This would. allow him. to
try to negotiate a lower rate: increase with MPS and/or try to secure bids from
other carriers. He would get claims runs and monitor our claims and meet with us
at least quarterly. He would he paid a commission by the Insurance Provider and
he. would not cost the city anything.
Mr. Hall didn't think any other bidders would be able to offer coverage less
expensively than DIPS, and we may not ce't any bids at all. He doubted we could.
find coverage any better than what we have now.
He didn't feel third party administrators of self insured programs would play any
any part in cost control, they usually simply pay the. bills.
The connittee concluded the Clerk/Treasurer and City z,ttorney should look at any
possible changes in coverage or funding of the Group Health Insurance Plan. They
didn't take any action on the agent of record proposal.
They also requested Halver to contact the County, School District and other
agencies and report anything he finds at the next ccmTd ttee meeting.
3. Ambulance Write-offs
Clerk/Treasurer Halver reported the accounts to be written off- were uncollectable
and consisted of Clients who were bankrupt, destitute, died with no estate or
covered by Medicare/Dledicaid which only paid a. certain amount and we are. barred
from collecting the difference.
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8:15 xI
h7T�SJCE./PiS:SOTaTL F, POLICY/INSUPANCE
JUI,Y 5, 1989
• Councilf"an I4ystul. r,, vea rEc'c.7rr',.endatlon of approval to the council, Councillian
SaveraJ seconder: amo] the ration carried.
4, Primary Election. Issue
The conouittee was concerned that the priazoy wouldn't serve any useful. _MLYk1e,c
because it wouldn't reduce the nurrber of candidates on the 14ovember ballet.
City Attorney Neier was called into the meeting alr; e:cplained that state law
requires the city to hold a primary election and he wouldn't advise the council to
not hold the election.
He said the possible probl.erc, woulcl be if someone wanted to be a write-in candidate
for the primary.
Cotulcilrran Nystul moved the ccrwittee recommend to the council that a priffary
election not be held, contra.o., to the legal advise of the City Attorney and the.
Election Department, ;;-nd to ,;plain any risks to the council. Councilman Saveruc,
seconder, and the riioti.on carried with Councilman Hopk ins abstaining.
5 Compensatory Time Policy Resolution
The coreni_t:tee briefly revic;,ed the resolution and concluded they were ready to
reconrnend pac;sage to i_lie council.
6. Approve C] a im ,
Councilj;-an Atkineorl a0journe,d the forral meeting and the cor littee reviewed the
• claims.